ACC 211

CONTINUOUS
ASSESSMENT TEST
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15. Adamu settled his debt of N5500 1 point

with Garuba by cheque. The

accounting entries in Adamu's books
are debit

A. Garuba account, credit cash account

C. Trade payable, credit bank account

E. Cash account, credit trade receivable

D. Trade receivable, credit bank account

B. Bank account, credit Garuba account

22. In the balance sheet fixed assets 1 point

are classified separately from current

assets because:

(b) Fixed assets must be depreciated but

current assets need not.

(a) Fixed assets always last indeEnitely.

(d) Fixed assets always remain

unchanged but current assets are
circulating and the balances change
frequently.

(c) Fixed assets represent assets that are

used for the long term in the business
whereas current assets are used in the
short term.

32. Which of the following accounting 1 point

concepts is voilated by the inclusion of
private assets in the balance sheet of a
business by its owner?

C. Entity

D. Consistency

A. Materiality

E. Periodicity

B. Matching
 30. In the balance sheet gross fixed 1 point
assets are normally shown at which of
the following bases?

(b) Replacement cost.

(d) Current value.

(a) Historic cost.

(c) Net realisable value.

25. Capital of a business may increase 1 point

by which one of the following
transactions?

(a) A decrease in the bank with a

corresponding increase in Exed assets.

(b) An increase in assets with a

corresponding increase in liabilities.

(d) An increase in assets with a smaller

increase in liabilities.

(c) A decrease in the bank with no

decrease in liabilities.
:
 14. The following are books of original 1 point

entry EXCEPT

B. purchases day book

A. sales journal

E. sales ledger

D. cash book

C. general journal

11. When the double entry principle is 1 point

fulfilled within the cash book,----------.

entry has occurred.

E. None of the above

B. Double

D. Control

A. Single

C. Contra
:
 28. The balance sheet is intended to 1 point
show:

(b) The ownership of the business.

(d) The size of the business.

(a) The nature of the business.

(c) The Enancial position of the business.

9. What is the discount given to 1 point

customers to encourage early

settlement of their debts?

B. Cash discount

D. Provision for discount

A. Discount received

C. Trade discount
:
 16. The following are source 1 point
documents EXCEPT

A. Payment vouchers

B. Cheque counterfoils

C. Credit notes

D. Contra notes

E. Purchases invoices

26. Which of the following summarised 1 point

balance sheets is correct?
USING THE BALANCE SHEET
EQUATION: ASSETS – LIABILITIES =
CAPITAL
ASSETS LIABILITIES
CAPITAL
(N) (N)
(N)

(b) 9,875 (10,000) 125

(a) 1,245 (345) (900)

(d) 3,650 (2,250) (1,400)

(c) 4,500 (4,400) 100

:
 39. In applying the periodicity concept, 1 point
financial transactions are reported for
a period of how many years?

A. One

E. Five

C. Three

D. Four

B. Two

40. Which of the following 1 point

transactions would lead to reduction in

assets and liabilities?

A. Sale of goods on credit

E. None of the Above

D. Cash purchases

B. Cash paid to creditors

C. Purchase of goods on credit

:
 38. Which of the following is a 1 point
necessary condition for a change in
accounting method overriding the
consistency concept?

A. The users of the Enancial stattement

should be informed of the change

B. The effects of such change on reported

proEts should not be communicated

C. The changes should be made

frequently

D. The changes should be made for the

purpose of proEt manipulation

10. Recording of transactions must be 1 point

done on double entry basis in which of
the following subsidiary books?

E. Purchases Day Book

B. Cashbook

C. Sales Day Book

A. Return outwards Day Book

D. Journal proper
:
 18. The correct entries for this 1 point
transaction in SALOMES books are

A. Debit o[ce equipment; Credit

stationery and cash

E. Debit cash and o[ce equipment; credit

stationery

C. Debit cash; credit o[ce equipment and

stationery

D. Debit cash and stationery; credit o[ce

equipment

B. Debit o[ce equipment and stationery;

credit cash

41. Which of the following accounting 1 point

concepts is violated by the inclusion of
private assets in the statement of
financial position of a business by its
owner?

C. Entity

A. Materiality

B. Matching

D. Consistency

E. Periodicity
:
 6. Mr. A sold goods to Mr. B, the list 1 point

price of which is N50,000, on credit

allowing 2.5% trade discount and
another 5% cash discount for prompt
payment by the debtor. What is the
amount to be paid by Mr. B after the
cash discount?

D. N46,312.5

B. N21,250

A. N48,750

C. N38,750.5

E. N45,350

35. Which of the following accounting 1 point

concepts justifies the charging to

expense the cost of a small waste
basket despite its usefulfulness for
several years?

E. Periodicity concept

A. Materiality concept

D. Consistency concept

C. Entity concept

B. Matching concept
:
 27. Which of the following is most 1 point
indicative of the liquidity of a
company?

(b) The capital of the company.

(d) The working capital of the company.

(c) The balance on the company's proEt

and loss account.

(a) The bank borrowings of the company

24. Which of the following statements 1 point

is incorrect?

(d) Capital invested in a business is

usually invested for more than one year.

(c) Non-current assets will have a useful

life of more than one year.

(b) Current liabilities are payable within

one year.

(a) Current assets will result in future

beneEts for more than one accounting
year.
:
 17. The correct trail for goods 1 point
purchased on credit by Hassan Limited
in his books is

A. Purchase invoice; general journal;

purchases account; trade receivables; trial
balance

D. Purchase invoice; purchases journal;

purchases account; trade receivables; trial
balance

C. Purchase invoice; general journal; cash

book, purchases account; trial balance

B. Purchase invoice; purchases journal;

cash book; purchases account; trial
balance

2. The discount values in the cashbook 1 point

should, at an agreed period be

B. Balanced against each other

E. None of the above

A. Transferred in total to their respective

accounts

D. Added to respective bank balances in

the cash book

C. Deducted from respective cash

balances in the cash book
:
 48. Goods purchased on credit was 1 point

debited to purchases account and

credited to trade payable account.
What is the error committed?

A. Error of Commission

B. Error of partial reversal of entry

C. Error of Original entry

D. No Error

20. Which of the following accounts is 1 point

credited when a non-current asset is

disposed for cash?

B. Asset account

C. Cash account

E. Journal proper

D. Equity account

A. Sales account
:
 49. N2,500 Discount received on 1 point

goods purchased was debited to

discount received account. How do you
correct this mistake?

A. Debit Discount Received Account and

Credit Suspense Account with N2,500

B. Debit Suspense Account and Credit

Discount Received Account with N5,000

C. Debit Suspense Account and Credit

Discount Received Account with N2,500

D. Debit Discount Received Account and

Credit Suspense Account with N5,000

34. Which of the following is an 1 point

implication of the entity concept to a

sole trader?

C. Owner cannot own private assets

A. Business can sue and be sued

seperately

E. Private use of business assets

increases owners capital

B. Private use of business assets reduces

owners capital

D. Liability of the owner is limited

:
 37. Which of the following is not 1 point
involved in the process of
bookkeeping?

D. Interpretation of Enancial information

E. ClassiEcation of Enancial information

C. Collecting of Enancial information

A. Analysing of Enancial information

B. Recording of Enancial information

33. Which of the following accounting 1 point

concepts requires the determination of
a cutoff value helps an organization for
its application?

A. Materiality

D. Consistency

B. Matching

E. Periodicity

C. Entity
:
 46. How do you correct an electricity 1 point
bill of N1,200 debited to telephone bill
account?

C. Debit suspense account and Credit

telephone bill account with N1,200

B. Debit telephone bill account and Credit

electricity bill Account with N1,200

A. Debit electricity bill account and Credit

telephone bill Account with N1,200

D. Debit suspense account and Credit

electricity bill account with N1,200

7. Which of the following items is not 1 point

recorded in the cash book?

C. Receipt from a debtor

A. Salaries of workers

D. Bank charges

B. Depreciation of equipment
:
 31. Which of the following is not a user 1 point

of accounting information?

E. Financial analysts

D. Pressure groups

B. Lending institutions

C. Labour unions

A. Government agencies

1. All except one are posted to the 1 point

credit side of Sales Ledger Control
account _________

A. Discount Allowed

B. Dishonourned cheque

C. Cash received

D. Goods returned
:
 43. An item bought for N545 as written 1 point

on the receipt was posted to the

cashbook as N554. One of these errors
was committed.

A. Error of omission

B. Error of commission

C. Error of original entry

D. No error committed

23. Which of the following shows 1 point

current assets in order of liquidity (E.G.,

CLOSEST TO CASH), starting with the
most liquid item?

(c) Cash, bank, stock, debtors.

(b) Bank, cash, debtors, stock.

(a) Cash, stock, debtors, bank.

(d) Cash, bank, debtors, stock.

:
 12. The equality of debits and credits 1 point

can be tested periodically with the use

of a ----

B. journal entries

A. ledger entries

C. trial balance

E. day book

D. t-account

13. Kola returned goods worth N2,000 1 point

to Bala out of the goods purchased on

credit. In which book of original entry
will Bala record this transaction?

A. sales day book

B. purchases journal

E. return outwards day book

D. return inwards day book

C. purchases returns journal

:
 29. The following items belongs to the 1 point
same class except:

(b) Loan by an employee repayable to the

company.

(a) Unquoted investment.

(c) Goodwill.

(d) Furniture and Ettings.

42. Which of the following is correct? 1 point

A. Liabilities- capital = asset

E. None of the Above

B. Capital + liabilities = assets

C. Capital-drawings = assets

D. Assets + liabilities = capital

50. Which of the under listed errors 1 point

affects the agreement of the trial

balance?

C. Compensating error

A. Error of omission

B. Error of commission

D. None of the above

:
 47. In the trade receivable control 1 point
account, dishonoured cheque is treated
as?

D. A Credit entry

C. A suspense entry

A. A contra entry

B. A debit entry

19. The correct entries for this 1 point

transaction in ESSIENS books are

C. Debit cash; credit o[ce equipment and

stationery

E. Debit cash and o[ce equipment; credit

stationery

A. Debit o[ce equipment; Credit

stationery and cash

D. Debit cash and stationery; credit o[ce

equipment

B. Debit o[ce equipment and stationery;

credit cash
:
 36. Which of the following phrases 1 point

describes "accounting"?

A. Statement of business

E. Saying of business

D. Voice of business

C. Vocal of business

B. Language of business

3. When is a petty cash account 1 point

debited?

B. When the fund is established and every

time money is replenished

C. When the fund is established and when

the size of the foat is decreased

D. Every time money is drawn from the

petty cash

A. When the fund is established and every

time money is spent
:
 44. Repair of motor vehicle was 1 point

debited to motor vehicle asset

account. What type of error was
committed?

A. Complete reversal of entry

B. Error of commission

D. Partial reversal of entry

C. Error of principle

21. Categorise the following items as 1 point

tangible (T) or intangible (ITG) assets:

Item 1. Land. Item 2. Goodwill.
Item 3. Patents and Copyright.
Item 4. Quoted investments.
ITEM 1 ITEM 2 ITEM 3 ITEM 4

(c) T ITG ITG T

(a) T T ITG ITG

(d) T T ITG T

(b) T ITG ITG ITG

:
 8. A credit balance in the bank column 1 point
of double column cash book is an
indication of

C. Bank overdraft

B. Shortfall of cash at hand

A. Surplus of cash in the bank

D. Bank owing to the business

5. A business sold goods, the list price 1 point

of which is N50,000, on credit allowing

2.5% trade discount and another 5%
cash discount for prompt payment by
the debtor. What is the value of the
cash discount?

E. N5,350

C. N8,750

D. N6,312.5

A. N2,437.5

B. N1,250
:
 45. Insurance paid by cash was 1 point

credited to insurance account and

debited to cash account. What is the
name of the error committed?

C. Error of commission

D. No error committed

B. Compensating error

A. Complete reversal of entry

4. Types of Cashbook include all the 1 point

following except

E. Three column cashbook

A. Single column cash book

C. Petty cashbook

B. Double column cashbook

D. Tree column cashbook

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